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Problem 8-1A Novak Corp. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end
Problem 8-1A Novak Corp. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end Calculate the total estimated bad debts on the below information. Number of Days Outstanding 61-90 $39,000 Total 0-30 31-60 91-120 Over 120 Accounts Receivable 398,000 $237,000 $90,000 $19,000 $13,000 % uncollectible 1% 496 5% 9% 11% Estimated bad debts SHOW LIST OF ACCOUNTS Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,000 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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